China blocks Meta's Manus deal
- China’s National Development and Reform Commission ordered Meta to unwind its roughly $2 billion acquisition of Manus on Monday, blocking the cross-border AI deal. - Manus is a Singapore-incorporated startup with Chinese roots; Beijing had opened a probe in January and later told both sides to restore the status quo. - The case hardens scrutiny of Chinese AI talent and overseas transfers as U.S.-China rivalry deepens. (cnbc.com)
China ordered Meta to unwind its roughly $2 billion acquisition of artificial intelligence startup Manus, stopping one of the biggest recent cross-border AI deals. (cnbc.com) (bloomberg.com) The order came Monday from the National Development and Reform Commission, China’s top state planner, which said it was prohibiting foreign investment in Manus and requiring the parties to withdraw. (fastcompany.com) (bloomberg.com) Manus is incorporated in Singapore but was founded by Chinese entrepreneurs, and Beijing had already opened a review of the transaction in January. (cnbc.com) (techcrunch.com) The startup became known for “agentic” artificial intelligence software, tools designed to carry out multistep tasks instead of only answering prompts. Manus publicly launched that product in March 2025. (the-decoder.com) (cnbc.com) Chinese state media had promoted Manus as the “next DeepSeek,” turning the company into a symbol of China’s push to keep advanced AI talent and intellectual property close to home. (cnbc.com) (forbes.com) Meta had announced the acquisition in late December, part of Mark Zuckerberg’s effort to strengthen Meta’s position in AI systems that can act more autonomously. (forbes.com) (the-decoder.com) Before the final veto, the deal was already under strain. Manus chief executive Xiao Hong and chief scientist Ji Yichao were reported last month to be unable to leave mainland China during the review. (channelnewsasia.com) (techcrunch.com) Meta had previously said the transaction complied with applicable law. Beijing’s decision now leaves the company without Manus and signals that a Singapore incorporation will not, by itself, put Chinese-founded AI startups beyond Chinese scrutiny. (cnbc.com) (techcrunch.com) The timing also lands just weeks before a planned Beijing visit by President Donald Trump for talks on trade and investment, adding another flashpoint to the United States-China technology fight. (cnbc.com) For now, the clearest message from Beijing is that AI code, engineers, and ownership structures are being treated less like ordinary startup assets and more like strategic infrastructure. (fortune.com) (cnbc.com)
